Residential real estate borrowers who are behind on their monthly mortgage payments for an extended period of time are generally served with default notice by the investor (Chase) that funded the existing mortgage loan, thus commencing foreclosure proceedings. Foreclosures are mostly unavoidable despite the best efforts of the note-holding investor, lender or bank to mitigate them. Chase holds such foreclosed properties in its inventory of REO homes. Chase tries to sell off the REO properties they own in a timely manner to lessen their impact on the real estate market of the area in which the properties are located.
When a borrower is unable to make their scheduled monthly mortgage payments, Chase repossesses the property either after all foreclosure proceedings are completed, or if a deed-in-lieu of foreclosure was accepted by the defaulting borrower.
- A deed-in-lieu is also referred to as “voluntary conveyance”. It occurs when a borrower voluntarily chooses to transfer the title to the mortgage note holder to avoid foreclosure. Chase owned homes acquired in this manner are usually vacant at the time of assignment to a listing broker.
- In a standard foreclosure, the process is entirely legal and procedural. A foreclosure relinquishes the defaulting borrower of all interest and privileges on the mortgaged property. If a sale occurs at a public auction, the proceeds go towards paying off the mortgage debt owed to Chase.
The mortgage servicer handling the foreclosure immediately informs Chase in case a sale occurs. This step is usually completed within 24 hours. Right afterward, the entire Chase Bank REO management and disposal process begins. Receipt of the REOgram triggers Chase’s REO workflow process. One of the first steps of the workflow process is assigning the property to a listing broker.
Types of Chase Bank REO Properties for Sale
The general composure of the REO properties held by Chase in its inventory is a direct reflection of the types of mortgages purchased and securitized by the Bank. As Chase is one of the biggest players in the securitization of residential loans, the primary component of their REO listings is residential real estate.
- Single Family
- Manufactured Housing
Buying Chase REO homes
Residential single-family homes and multi-family homes make up the composition of Chase Bank foreclosed homes. Chase employs the services of local real estate brokers and agents to manage their portfolio of repo homes. Real estate professionals are tasked with the maintenance and listing of Chase REO homes. All the REO property listings can be found on their official REO website. Most of the listings contain comprehensive information related to the listed REO property. Investors and potential buyers can see photographs of the property along with property descriptions and other relevant details. Information about local schools, taxes and neighborhood information can be found on individual REO listings.
Listings of Chase REO Homes for Sale
REO home buyers should gain a thorough insight into the various steps and processes involved in buying a foreclosed home from Chase Bank. All the information that is needed to make an informed choice about the home purchase can be found online. The entire agency inventory of foreclosed & repossessed homes can be seen among Chase REO home listings.
Chase REO department’s property listings are listed through pre-approved real estate agents that service a given area. Any known hazards are thoroughly disclosed on the individual property listing page and also in the REO contract documents. This doesn’t mean that all hazards on the property have been disclosed and the buyer can proceed without a thorough inspection being conducted on it.
Any property offered for sale through Chase listings is sold in “as is” condition. This basically means that the buyer accepts the property in its existing condition and gives up any later recourse for compensation. JP Morgan Chase doesn’t take responsibility for any repairs after the settlement, so the borrower must pay very close attention during the inspection period.
Searching for Chase Bank REO Listings
Individual listings of FNMA homes contain data about neighborhoods, homes, and schools which can be accessed at the flick of the mouse. Being prepared and informed certainly saves time and prevents avoidable mistakes and costly pitfalls when buying a listed REO home. Chase REO property website is a great source to initiate your quest for buying an ideal home owned by Chase.
The REO listings site makes it very easy to find a property that meets buyer-defined search criteria. The site offers various options to narrow down and locate a home that fits specific parameters and needs of the investor. REO properties owned by Chase are listed currently in record-breaking numbers. They can be found in almost all the zip codes, cities, and states in the country. Chase’s REO listings contain properties of all sizes and values in varying physical conditions.
Instead of constantly revisiting the listing site, an investor should use the valuable filtering options and customizable alerts to keep up with new home listings hitting their local market. To search for Chase REO homes in a host of different ways, use the advanced search options found on the website. A list of homes that match user criteria can also be downloaded for easy sorting and filtering.
Making an Appointment with the REO Listing Agent
The site also makes it a breeze to make appointments with listing agents for visiting & inspecting REO properties. After clicking on the agent contact link on the listing, follow instructions to set up your next appointment with a Chase REO broker. Any questions that arise related to the property can be addressed to the real estate agent handling the property on behalf of Chase REO department.
The REO agent handling a property is listed on all Chase REO property listings. Approved REO agents interface between the buyers and JP Morgan Chase. Offers, counter-offers, contracts, and negotiations are handled by them exclusively. A buyer is also allowed to work with an agent of his or her choice to represent themselves in the purchase transaction. The buyer should try to pick an agent with prior experience and expertise in dealing with the purchase of foreclosed REO properties.
Information about Chase REO Department
Foreclosures and REO properties can have an adverse effect on the local markets in which they are located. Chase REO department’s main purpose is to promote affordable housing for Americans through disciplined management of the bank’s repossessed portfolio of REO homes.
To ensure neighborhood stability, Chase sells most of the REO homes it manages and owns to owner occupants. Chase REO department follows a number of steps to mitigate the impact of foreclosure on a neighborhood. They are:
- Quickly securing the properties it repossesses
- Properly assessing the condition of the REO home
- Making repairs and continuous maintenance to suit the locality standards
- Selling or renting to committed people, preferably, owner occupants
Functions of Chase REO Asset Management Department
The primary functions of Chase REO department are acquisition, valuation, property maintenance and disposition. During the acquisition stage, the asset management department gains the title to the foreclosed property. At this stage, the property is owned by Chase. After this, it directs the local pre-approved REO agent or appraiser establish the market value of the property. The ongoing maintenance and upkeep work is done to ensure that the property is in marketable condition. The listing of the property, engaging in negotiations with potential buyers, screening documents and selling are assigned to REO listing agents by REO department at Chase.
Loan Servicing and Loss Mitigation
Lenders and servicers play a major role in the current mortgage landscape. A mortgage home lender is a licensed financial institution engaged in funding of residential real estate loans, while a mortgage servicer handles the collection of payments.
Borrowers who fail to make their monthly scheduled loan payments are given alternatives to cure their delinquency by the servicer. Servicers for Chase try to ensure that its investment is protected by taking appropriate and timely action to deal with delinquent loans. Before initiating foreclosure proceedings, a Chase servicer will make reasonable efforts to resolve the borrower’s default by proposing loss mitigation and relief alternatives. If a borrower, in spite of servicer’s efforts, fails to keep up with payments, a notice of default is served to them.
When a property foreclosed by servicer has a mortgage by Chase, then such repossessed home becomes part of Chase REO inventory. Chase REO department is responsible for quickly selling off the homes it owns. The REO division manages all aspects of the REO process through a network of asset management companies, agents, brokers, and vendors. A Chase REO property’s ongoing maintenance including repairs, cleaning and landscaping are handled by local vendors and contractors. Valuation, BPO, listing and selling or renting of property are handled by REO agents.
Maintenance, Listing, and Selling
Chase REO listings can be seen on their website. These listings are made up of both homes Chase owns and manages for other lenders. The properties they own are usually acquired through either deed-in-lieu or foreclosure. All questions related to Chase managed properties must be directed to the REO department, sales representative or AMP asset manager.
When it comes to the disposition of its inventory of REO homes, the REO division of Chase follows both the in-house and outsourcing models. These two models vary much in the way they work.
With an “in-house” model, the reo property is assigned to a sales representative within Chase REO department. The entire disposal process from picking the right agent to the right vendor is handled by the Chase sales representative.
With an “outsourcing” model, instead of assigning to an internal sales person, the Chase reo property’s management and selling is outsourced to an external asset management company that specializes in handling REO homes. A number of agents, brokers and vendors service proprties that fall under both models of REO management.
Financing of Chase REO Properties
Before beginning the search for an REO home, the buyer needs to determine their affordability. A mortgage broker or financial consultant helping the borrower with REO financing should be able to provide a good estimate of the payment that is affordable based on the income, asset and credit profile. After determining the maximum loan amount, the borrower can proceed to search for suitable Chase REO properties that do not exceed this limit.
Before digging through Chase REO listings to find your ideal home, it is critical to get proof for pre-approval from the mortgage lender qualifying you for financing. Before providing a pre-approval for the borrower, the mortgage lender will seek to verify information through documentation related to income, employment history, assets, debts and credit history. Upon successful validation of all the qualifying criteria for a home loan, the lender will issue a letter of pre-approval. Having this letter serves a proof and allows sellers such as Chase REO department to confirm the seriousness of the buyer making an offer on their repo properties.
It should also be noted that a pre-approval letter doesn’t actually mean that the lender has already approved the borrower. The buyer will still be required to go through the entire application process needed for a mortgage loan. This stage of the purchase process begins soon after the signing of a binding contract with the seller (Chase).
REO property buyers should consult a trained and experienced housing counselor to resolve any concerns, anxieties and doubts related to home buying process of a Chase REO home. Compared to conventional loans, there’ll always more issues to address when financing of a Chase REO property is involved. The amount of down payment a buyer can put down at closing determines the types of home loans for which the buyer qualifies. Their services can be afforded by almost anybody as they charge little or no fees. Listings of qualified and approved housing counselors in an area can be found on HUD site. Counselors should be able to also provide current info related to government and private housing assistance programs, grants and other special help loan programs.